Inflation fears boost real estate rates

Long-term mortgage rates rose for the third consecutive week as rising fuel prices ignited inflationary fears economywide, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage averaged 5.91 percent for the week ended today, up from last week when it averaged 5.8 percent. The average for the 15-year fixed-rate mortgage is 5.48 percent, up from last week when it averaged 5.37 percent. Points on both the 30- and 15-year averaged 0.5. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.44 percent this week, with an average 0.5 point, up from last week when it averaged 5.31 percent. The one-year Treasury-indexed ARM averaged 4.68 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.48 percent. "This past week's increase in mortgage rates reflects market anxieties over inflationary pressures, energy price increases and slipping consumer confidence," said...